Florida Insurance: What You Need to Know

The cause of a possible loss, such as fire, theft, windstorm, or collision.

A separate deductible that applies specifically to hurricane damage, typically a percentage of the dwelling coverage (2-5%), and only triggered when a hurricane is officially declared.

Insurance coverage for damage caused by sinkholes, which may be included, excluded, or available as an endorsement depending on the state and insurer.

An ISO commercial property coverage form providing the most limited coverage, insuring only against specifically named perils such as fire, lightning, explosion, windstorm, hail, smoke, aircraft, vehicles, riot, vandalism, and sprinkler leakage.

Florida's state-run property insurer of last resort, providing coverage to property owners who cannot obtain insurance in the private market, primarily for hurricane and windstorm exposure.

Texas's state-run windstorm and hail insurance pool providing coverage for coastal properties that cannot obtain coverage in the private market, covering 14 coastal counties and portions of Harris County.

Louisiana's disaster recovery program providing grants to homeowners for hurricane damage repair and rebuilding, created after Hurricanes Katrina and Rita in 2005.

Hawaii's state program providing reinsurance to property insurers for hurricane losses, helping maintain availability of hurricane coverage in the private market.

Insurance coverage that protects against losses from flooding, which is specifically excluded from standard homeowners and renters insurance policies. Flood insurance covers direct physical losses caused by flooding, including overflow of inland or tidal waters, unusual accumulation of surface water, mudflow, and collapse of land along a body of water. Available primarily through the National Flood Insurance Program (NFIP) or private insurers, with a typical 30-day waiting period before coverage takes effect. Essential for properties in flood zones but recommended for all properties since 25% of flood claims come from low-risk areas.

A residual market mechanism (also called Wind and Hail Underwriting Association) that provides wind and hail coverage for coastal properties unable to obtain coverage in the voluntary market. Common in hurricane-prone states like South Carolina, North Carolina, Texas, and Louisiana.

Hawaii Hurricane Relief Fund - a state program that provides hurricane insurance coverage for condominium associations (AOAOs) that have been denied coverage by at least two private insurers. The fund was created to address the hurricane insurance availability crisis in Hawaii.

A state-sponsored property insurance program that provides wind and hail coverage for coastal properties in hurricane-prone areas. Beach Plans operate as residual markets when private insurers decline to provide coverage. Also known as Wind Pools or Wind and Hail Underwriting Associations.

Reinsurance coverage that protects against losses from catastrophic events such as hurricanes, earthquakes, or floods that affect multiple policies simultaneously. Also known as Cat Cover, this protects insurers from events that could threaten their solvency.